Excellent technical presentation!
Though the style itself is a bit too "clay-like", like I wouldn't expect a cube melding with the terrain sand to be a smooth glued connection. Is that some "inherent" SDF thing or just a style of the demo?
While this true for traditional SDF rendering (e.g. raymarching), the method of "interpolating cached distances" used here means that you will always get blending between objects.
It’s just easy to do the melding thing with SDFs so a lot of people do it